A new state report offers a series of recommendations to expand existing mobile home parks in Maine and build new ones, allow homeowners to obtain traditional mortgages at more favorable rates and overhaul the state’s oversight of parks.

The 30-page report, written by the Governor’s Office of Policy Innovation and the Future and mandated by legislation passed last year, is intended to be a blueprint for future proposals as lawmakers seek to protect the roughly 45,000 Maine residents who live in mobile home parks.

It will be presented to the Housing and Economic Development Committee this month.

Mobile home parks in Maine and across the country — often considered the last form of unsubsidized affordable housing — are increasingly being purchased by out-of-state investors who raise the monthly lot rents, in some cases doubling or tripling prices, according to national data. 

Park residents, often low-income families or seniors on a fixed income, own their homes but not the land they sit on and residents are essentially helpless against rent increases.

“If they’re forced to lose their housing because the rents get too high, it’s hard to see where they’d be able to go,” said Greg Payne, senior housing adviser for the Governor’s Office of Policy Innovation and the Future.

The state is feverishly trying to build tens of thousands of housing units in the coming years, but Payne said in an interview it’s just as important to “protect the housing that we do have.”

“If we lose any of our affordable housing stock, that’s going to make our challenge even greater,” he said.

FINANCIAL ASSISTANCE FOR OWNERS, RESIDENTS

Many state officials would like to see more mom-and-pop or cooperatively owned manufactured housing communities, especially as the state tries to ramp up production.

But according to the report, the number of locally owned communities has been dwindling, and smaller owners and developers frequently struggle to increase available housing in their parks.   Boosting supply could also help lower costs for existing residents. 

As with all construction, it has gotten expensive. 

“There are plenty of owners who I think would be willing to expand if the math worked,” Payne said. “If we’re able to help with that, it creates more units that we desperately need across the state and creates the opportunity to spread existing costs across more households.”

The report recommends, among other things, making it easier for park owners to access MaineHousing construction loans, which state statute currently prohibits. 

The office also suggested developing a subsidy program that would give owners a forgivable loan if they agree to charge income-restricted lot rents to income-restricted households. 

‘TOO GOOD TO MISS’

The report also recommends allowing mobile home buyers to take out traditional mortgage loans.

Historically, loans for manufactured homes have been titled as personal property or “chattel” loans, similar to cars. These loans, according to the report, typically have shorter terms, higher interest rates, fewer lenders to choose from and inferior consumer protection. 

Over the years, construction technology and government regulations have evolved and factory-built houses are now often comparable to site-built housing, according to the report.

The price gap between the two is also narrowing, with many mobile homes selling for well over $200,000.

Payne said he spoke to an Old Orchard Beach resident whose interest rate is more than 11%, and is paying about $640 a month for a $60,000 loan, on top of her monthly lot rent. Comparatively, according to mortgage buyer Freddie Mac, the current interest rate on a 30-year mortgage is about 6.15%. That would save her hundreds of dollars a month.

“We don’t often have the opportunity to increase affordability and have nobody losing,” Payne said. “It’s an opportunity that could be too good to miss.”

‘SYSTEMIC LACK OF SUPPORT’

The report recommends an overhaul or “reimagining” of state regulation and oversight of mobile home communities to better serve residents. 

Currently, the Maine Manufactured Housing Board is in charge of licensing and inspecting parks, while landlord and tenant issues and consumer protection claims are enforced by the Office of the Maine Attorney General or the court system. 

But according to the report there is a “systemic lack of support” from state government in addressing some of the more common problems in parks — poor living conditions, untenable community rules and fees, disregard of state laws — and attempts to get help from either agency often result in referrals elsewhere. 

“This pattern of circular referrals, rarely leading to support, often leaves park residents feeling isolated and unheard,” the report says. 

The office recommends that the Legislature transfer the responsibility for certification, technical assistance and regulatory coordination from the Office of Professional and Occupational Regulation, where the board is currently housed, to the Maine Office of Community Affairs, which would also serve as a “first call” for residents seeking assistance.

Compliance with state rules would be handled by the attorney general’s office, which may need to find ways to provide more legal support to homeowners.

Finally, the report recommends directing more private resources toward supporting a housing attorney at Pine Tree Legal Assistance who has expertise in mobile home park issues.

LEGISLATIVE EFFORTS

Mobile home parks have been a hot-button issue in the last few Legislative sessions.

Lawmakers last year passed a series of bills designed to protect mobile homeowners, including one that gives park residents the “right of first refusal” if their community goes up for sale. 

In addition to the recommendations outlined in the recent report, the state is seeking to collect more data about the state’s parks.

Historically, the Maine Manufactured Housing Board has not tracked whether the parks are owned by resident co-ops, out-of-state corporations or Maine-based operators. It also collected no information about how many lots are in each park, vacancies or average lot rents.

That information is now required in order to license a park.

Another bill, which has resulted in confusion and some retaliatory rent increases, requires owners to provide 90 days written notice of a rent increase and establishes a process for residents to request mediation if the increase is more than the Consumer Price Index plus 1%. While owners are required by the new law to act in good faith, they are not prevented from moving forward with an increase.

Efforts to institute statewide rent control failed in the last session, in part due to Maine’s long history of local control, but many communities, including Brunswick, Saco and Sanford, have passed rent control measures or moratoriums on rent increases as they grapple with how to protect residents. 

The state report includes a model rent stabilization ordinance for municipalities but no mandate.